If it is indirectly involved in agriculture in another occupation, it shall not be deemed a self-employed farmer.

Since the plaintiff who operates the architect office cannot be deemed to have engaged directly in farming, it shall not be deemed to be a self-employed farmer.

Article 57 (Exemption of Gift Tax on Farmland, etc. Donated by Self-Employed Agriculture, etc.)

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

The Defendant’s disposition of imposition of KRW 49,628,050 on October 4, 2005 against the Plaintiff was revoked.

1. Details of the disposition;

A. On February 16, 2005, the Plaintiff: (a) deemed that each of the instant lands constituted farmland donated by a self-employed farmer on May 16, 2005, ○○○-dong ○○○-dong ○○○○-dong ○○○-dong ○○-dong ○○-dong ○○-dong ○○-dong ○○-dong ○○-dong ○○-dong ○○-dong 208 square meters (hereinafter “instant land”); and (b) 323 square meters in ○-dong ○-dong ○-dong ○○-dong ○-dong ○-dong ○○ ○○-dong 23 square meters (hereinafter “instant land”); and (c) on May 16, 2005, the Plaintiff reported and paid gift tax on each of the instant land.

B. On October 4, 2005, the Defendant notified the Plaintiff of the amount of gift tax of KRW 49,628,050, which reverts to the year 2005, on the ground that each of the instant lands does not fall under “farmland within the agricultural promotion floor area under the Farmland Act” under Article 16(2) of the Addenda of the Restriction of Special Taxation Act, which is the object of exemption from gift tax, and that the Plaintiff does not fall under “self-employed farmer” under Article 55(1) of the Enforcement Decree of the former Regulation of Tax Reduction and Exemption Act, and instead did not recognize the amount of gift

[Ground of recognition] Facts without dispute, Gap evidence 1, Eul evidence 1-1 and Eul evidence 1-2, the purport of the whole pleadings

2. Whether a disposition is lawful

A. The plaintiff's assertion

The purpose of legislation of Article 57 (1) of the former Regulation of Tax Reduction and Exemption Act is to reduce the tax burden of a self-employed farmer and protect farmland, and each land of this case can be acquired by obtaining the qualification certificate for acquisition of farmland pursuant to the provisions of Article 8 of the Farmland Act. Therefore, since farmland is the same as farmland in the agriculture promotion area to preserve farmland, it cannot be subject to exemption from the gift tax on the ground that it does not belong to the agriculture promotion area. In addition, the plaintiff is a self-employed farmer because he is engaged in farming in each land of this case together with his parents from the time of birth to the date of birth. Nevertheless, the disposition of this case otherwise reported is erroneous.

(b) Related statutes;

It is as shown in the attached Form.

(c)a recognition;

(1)Each of the instant lands is classified into an urban area, natural green area, and farmland specified in Article 8 of the Farmland Act on the land utilization plan, but is not included in the agriculture promotion area.

(2) On April 19, 2002, the Plaintiff filed an individual return on the amount of KRW 151,095,000 in the business year 2002, when the Plaintiff operated the ○ architect office from April 19, 2002 to ○○○○○ Building ○○○○○○○○○○○○○○○○○○○○, ○○○○, the amount of KRW 151,00 in the business year 2002, the amount of KRW 18,280,00 in the business year 203, and KRW 37,500,000 in the business year 204 and KRW 10,987,50 in the income amount of KRW 10,50 in the business year 204.

[Reasons for Recognition] Eul evidence Nos. 3, Eul evidence No. 4-1 to 4, Eul evidence No. 5

D. Determination

(1) First of all, farmland subject to exemption from gift tax pursuant to Article 16(2) of the Addenda of the Restriction of Special Taxation Act is limited to farmland belonging to "agricultural promotion area" designated by the State and local governments in order to provide preferential support among farmland under the provisions of the Farmland Act, including farmland that can be acquired by obtaining a qualification certificate for acquisition of farmland, and since each of the instant land belongs outside the agricultural promotion area, it is not subject to exemption from

(2) In addition, in order to be exempted from the gift tax pursuant to Article 57 (1) of the former Regulation of Tax Reduction and Exemption Act, the "self-employed farmer" should be deemed to be a donation of farmland. The "self-employed farmer" here refers to a person who is engaged in direct farming for at least two years retroactively from the date of acquisition pursuant to Article 55 (1) 2 of the former Enforcement Decree of the Regulation of Tax Reduction and Exemption Act, and even if he is engaged in direct farming, even if he is concurrently engaged in other occupation, he shall be deemed to be a self-employed farmer. However, if he is an indirect operation of agriculture with focus on other occupation, he shall not be deemed to be a self-employed farmer (see, e.g., Supreme Court Decision 98Du9271, Sept.

However, only the descriptions and images of evidence Nos. 4, 5-1, 2, 3, 6, and 7-1 through 4 are insufficient to recognize that the Plaintiff has been engaged in direct farming for not less than 2 years retroactively from the date on which each of the instant land was donated, and there is no other evidence to acknowledge this otherwise. Rather, according to the above facts, the Plaintiff has been operating an architect office for not less than 2 years retroactively from the date of acquisition of each of the instant land. Even if he participated in farming for the said period, it is merely an indirect part in agriculture in view of the Plaintiff’s belief in other occupations.

(3) Therefore, the Plaintiff’s assertion that each of the instant lands is subject to exemption from gift tax is without merit.

3. Conclusion

Thus, the plaintiff's claim is dismissed for lack of reason.

Related Acts and subordinate statutes

○ [former Regulation of Tax Reduction and Exemption Act (amended by Act No. 5195 of Dec. 30, 1996)]

Article 57 (Exemption of Gift Tax on Farmland, etc. Donated by Self-Employed Farmers, etc.)

(1) Farmland, etc. falling under any subparagraph of Article 56 (1) of the Act or the fishing vessels and fishing rights falling under Article 11-3 (1) 5 and 6 of the Inheritance Tax Act, which are owned or licensed as of December 31, 1991, shall be the farmland, etc. owned by a self-employed farmer or a self-employed farmer prescribed by the Presidential Decree (hereinafter referred to as the "self-employed farmer") who is the spouse or sibling of his lineal ascendant, lineal descendant, lineal descendant or sibling. In case where fishing vessels and fishing rights are donated on or before December 31, 1996, the relevant farmland, etc.

○ [former Enforcement Decree of the Regulation of Tax Reduction and Exemption Act (amended by Presidential Decree No. 15197, Dec. 31, 1996)]

Article 55 (Exemption of Transfer Income Tax on Farmland, etc. Transferred to Self-Employed Farmers)

(1) The term "self-employed farmer prescribed by Presidential Decree" in the main sentence of Article 56 (1) of the Act means a person who satisfies all of the following requirements (in cases of a farmer of farming prescribed by Ordinance of the Prime Minister, a person who meets

1. He shall reside in the Si/Gun/Gu (referring to an autonomous Gu; hereafter the same shall apply in this Article) in which the relevant farmland, grassland, forest land (hereinafter referred to as "farmland, etc.") is located or the Si/Gun/Gu in which such farmland, grassland, forest land is interviewed;

2. A person who is eighteen years of age or older as of the date of acquisition of such farmland, etc., and is engaged directly in farming for two years or more retroactively from the date of acquisition.

○ [Supplementary Rule of Restriction on Special Taxation (No. 5584, Dec. 28, 1998)]

Article 16 (Transitional Measures concerning Exemption of Transfer Income Tax, etc. from Self-Employed Farmers)

(1) The provisions of Articles 56 and 57 of the former Act shall apply to the ex post facto management and collection of the farmland, etc. exempted from the transfer income tax and the gift tax under the provisions of Articles 56 and 57 at the time of the enforcement of the amended Regulation of Tax Reduction and Exemption Act,

(2) With respect to the transfer or donation of the farmland (limited to that within the agriculture promotion area under the Farmland Act) subject to exemption from the transfer income tax and gift tax under the provisions of Articles 56 (1) and 57 (1) at the time of the enforcement of the amended Regulation of Tax Reduction and Exemption Act (Act No. 5195), which is the transfer or donation not later than December 31, 2006, the transfer income tax or gift tax shall be exempted pursuant to the provisions of Articles 56 (2) through (5)

○ [ Farmland Act]

Article 8 (Issuance of Certification of Farmland Acquisition)

(1) A person who intends to acquire farmland shall obtain the qualification certificate for acquisition of farmland from the head of a Si (referring to a Si which has no Gu, and limited to where the location of farmland is Dong Dong in the city of urban and rural complex form) having jurisdiction over the location of farmland. The head of a Gu (limited to where the location of farmland in the Gu of urban and rural complex form is Dong Dong). An Eup/Myeon or Myeon (hereinafter referred to as the "Si/Gu/Eup/Myeon") shall obtain the qualification certificate for acquisition of farmland in any of the following cases

1. Where farmland is acquired in accordance with the provisions of Article 6 (2) 1, 3, 5, 7 or 9;

2. Where acquiring farmland by merger of agricultural corporations;

3. Where farmland is acquired due to the division of co-owned farmland or other causes as prescribed by the Presidential Decree;

(2) Any person who intends to obtain a qualification certificate for acquisition of farmland under paragraph (1) shall prepare an agricultural management plan containing the following matters and apply for the issuance thereof to the head of a Si/Gun/Gu having jurisdiction over the seat of farmland: Provided, That any person who acquires farmland under Article 6 (2) 2, 2-2, 6 or 8 may apply for the issuance thereof without preparing an agricultural management plan:

1. The area of the farmland to be acquired;

2. A plan for securing labor force, agricultural machinery, and equipment suitable for the agricultural management of the farmland to be acquired;

3. The current status of the use of the farmland owned (limited to those who own the farmland).

Article 30 (Designation of Agricultural Promotion Areas)

(1) A Mayor/Do Governor shall designate an agricultural promotion area to efficiently utilize and conserve farmland;

The designation of an agriculture promotion area under the provisions of Article 30 shall be subject to the green area, control area, agricultural area and natural environment conservation area under the National Land Planning and Utilization Act: Provided, That the green belt in the Special Metropolitan City shall be excluded.

Article 35 (Expansion of Development Investments in Agricultural Promotion Areas and Preferential Support thereto)

(1) The State and local governments shall preferentially invest in projects for the improvement and maintenance of farmland and agricultural facilities, roads in agricultural and fishing villages, the expansion of distribution facilities for agricultural products, and other development of agriculture in an agricultural promotion area under the conditions as prescribed by the Presidential Decree

(2) The State and local governments shall give priority to providing necessary support, such as financial support or tax reduction under the Restriction of Special Taxation Act, to farmers or agricultural corporations cultivating crops or growing perennial plants on farmland in an agricultural promotion area.